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ptrainer · Joined: 30 Mar 2009 Posts: 1 1.39 Dollars($)

I would like to know why does the finance charge eqate to almost the amount financed. The mortgage person said this is the amount i will pay if i pay this off in 30 yrs but i still dont get it. i try and buy a house for 193,000 and enf up paying double for it in the end. Am i getting ripped off? apr is 5.361 and the total amount of payments will be 383,826.93

sara · Posted: Tue Mar 31, 2009 3:44 am Post subject:

Hi ptrainer,

The total amount that you need to pay off will increase because the interest will also get added to the loan amount. Let's take an example:

Suppose :
Principle borrowed = $198,500
Closing costs = $5500
Amount Financed = $193,000 ( $198,500 - $5500)
Interest Rate = 6%
Mortgage Term = 360 months (30 year)

With the help of apr calculator :
Monthly Payment = $1223.08
Total Payment = $440308.8
Total Interest =$241808.8

You are not getting ripped off by the lender. You can use the apr calculator and calculate what your total payments would be. This will help you in knowing whether your lender is charging an excess amount or not.

Take Care.

gmakerley · Posted: Tue Mar 31, 2009 8:56 am Post subject:

over a 30 year mortgage term, you're always going to find that you'll pay at least double. after all, you're paying interest and principal together.

if you can find a loan with zero interest, on which you pay only principal, then you'll be the ripper-off and the lender who is foolish enough to do that will suffer from his own folly.

Guest

- hi where can i find a calculator for my monthly payment.
- some bank going to finance for me so i can buy the things i want.
- the selling price of the things im going to buy is 88,900.
- the downpayment is 10% of the selling price which is 8,890 (w/c will come from my own pocket).
- the amount finance from the bank is 80,010.
- my quest is how did they get the value 3,471 for 36 months that value is printed on their installment plan summary.

thewretched02 · Joined: 23 Jun 2009 Posts: 115 23.92 Dollars($)

Can't imagine why any lender would want to offer 0%, whats in it for them?

savior70 · Posted: Thu Oct 22, 2009 5:31 am Post subject:

To STaSiS,

gmakerley · Posted: Fri Oct 23, 2009 6:15 pm Post subject:

stasis, your post is lacking some vital information. unfortunately, it's so vague that i cannot even begin to figure out what that vital information is that's missing. please give more details if you want someone to help you.

wretched, that was a throwaway line i was using just to get to the heart of the matter based on our original poster's scenario...sorry, i said far more than was necessary and made that kind of muddled.

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amount financed 193,010, finance charge 190.816-this is the info on my truth in lending statement.